Frequently Asked Questions FAQ’s-Exit Planning In A Box
We're attempting to address Your Most Common Curiosities and Concerns here so that you may get back to doing what you do best ... running your business.
Exit In A Box
Q1: What are the 21 Reasons that a business owner leaves their business?
Involuntary (9)
Encouraged (9)
On my terms (3)
Q2: 5 WI – As I am a Business Owner, what at are my 5 “What If’s”?
Q3: I like and need this but … I don’t have much time to do my Exit plan?
Time challenged (I’m too busy)A: 39 hours
Q4: I like and need this but … I “think” I have most of my Exit plan already handled/covered?
A4: Then why not have it all covered? It only takes one void or inconsistency that could wipe out/un ravel your whole plan – XPPA
Q5: I like and need this but … What if I can’t or don’t want to create this Exit plan on my own?
Q6: I like and need this but … -What if I decide I could use some real specialized Exit planning assistance?
Q7: I like and need this but … I’m a bit budget challenged at the moment?
Q8: Could one of my other advisors say they can do this for me?
A8: If they haven’t approached you directly and pointedly to create a comprehensive, concise and written plan for you as your Exit Financial Road Map, then you probably already know the answer to that. No! Otherwise you likely wouldn’t be here reading this answer now. The good news is that you’re taking some first steps to taking responsibility, “owning” your business owner Exit Plan. Link to Adv RefsA1: The 21 Reasons why I might Exit my business :
Involuntary Exits
• Spousal pressure
• Divorce
• Children or employees can’t or won’t run the business
• Children insist, or employees insist, on ownership
• Health problems: Owner/Partner, Spouse or Key Employee
• Financial problems: Business or Personal
• Partnership issues
• Death: Owner/Partner Spouse or Key Employee
• Disability: of Owner/Partner Spouse or Key Employee
Encouraged Exits
• Fatigue
• Boredom: ready to start a new chapter in life
• No fire in the belly
• Decreasing tolerance for risk
• Taking the company to the next level will require a new level of debt or equity
• Unable or unwilling to keep up or catch up with technology
• Unwillingness to fight another economic down cycle
• Unwillingness to fight the neighborhood’s newest 600 pound gorilla
• Company may have been struggling
Dream Exits
• A REAL, too good to be true offer is presented
• Recognition that valuation multiples may represent a temporary window of opportunity
• Desire to remove financial chips from the table
A2: As a Business Owner? You have - 5 What If’s!
What if:
w “I don’t WANT to do this anymore?”
w “I CANNOT do this anymore?”
w “I LOSE key people?”
w “Cash Flow DOESN’T improve?”
w “A REAL, too good to be true opportunity comes along?”
Isn’t it time we talk?